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Globalization as a word has existed for a long time but what this word actually has some different meanings. Globalization is simply a process of interaction among people,companies and governments.Globalization is an interective process.Â The globalization has an integration of Â people, firms and international markets. The globalization process has a lot of effects on the environment, on the cultures and on the political systems. Globalization has connected the people all over the world. Information reaches the other parts of the world immediately in a very short time , even instantly. People can move other international countries easily. It can be described as the increased movement of people, knowledge, ideas.'' Globalization refers to increasing integration of economies around the world, particularly through trade and financial flows."(Robert and Hite page 16) However , when people are curious about the definition of the globalization, they say it is about the economic affairs, multinational firms , maybe Americanization of the cultures and westernization of the markets. Globalisation came to be seen as more than simply a way of doing business all over the world. A great number of people regard it as a chiefly economic phenomenon.This term also includes sharing social and cultural values as well as new techonologies as the world grows together. Modern commnications make it possible.Different countries have different communicantion ways.If global firms want to do business with different countries they need to communicate clearly with them.This means that globalisation has great power on firms and even governments.Globalisation can change the closed regimes of the countries.Globalisation will accelarete the spread of democracy.The protests in middle east can be the result of globalization of the world. No doubt this word is much more than doing business globally. Our daily experiences at school,work and home are an integral part of globalization. Globalization is a way of opening minds to new ideas.The globalization force is so powerful that all cultures will be the same global culture in future with its own rules and own traditions.
Today some cultures began to replace the global values instead of their own values, even their diets. Culture has been affected by for instance changes in diet, McDonalds began in America and now the fast food restaurant has chains across the world. Globalization cannot be avoided in this century for all nations in the world. It is a complex process of worldwide which effects economies, societies and cultures. These dimensions are very closely related. Economies become more connected to other economies. They have increased opportunity but also increased competition. Thus, globalization becomes a more and more common feature of the world economies, markets and firms. Globalization brings about much increased opportunities for almost everyone. Why globalization is so important? Globalization produces widespread and profound impact on every field of the whole world, especially on the every aspects of society,economy,politics and culture. There are certain causes of globalization that doubles the spread of it.People can move easily to other countries as well as firms do.Some of them want to do business, some of them want to see different places but whatever their reasons to travel they become globalized.
Causes of globalization
Globalization raises the standard of living in developing countries and it increases the awareness of the people about the global events.Developing countries have economic and political aims in order to be a developed country. Developed countries have influenced the other countries in every aspect of their social and economic life.The main cause is influence from other more developed countries..Most of the people in uderdeveloped countries see these changes and they want to do the same changes in their country.This is a reason for globalization for them.I think that we are in a time of changing.
The advancement in technology and various inventions have brought a major change in the world today, the biggest being the integration of societies.
In addition, globalization improves social, political, and economical growth of countries.Another reason of globalization is communication technologies such as Internet, TV, phone and global media.
As nations integrate into the world economy TV channels,movies and music become universally available to consumers.Those factors force people to see themselves in relation to other cultures and values.Social web sites have much more contrubition to this process .People are ready to change to something and this helps to globalization.Different parts of the world, well organized people are willing to change their regimes into democracy.All of these causes accelarate the effects of globalization.People demand more freedeom and democracy at the same time they want to live in good conditions.All of these demands quicken the globalization of nations. When we analyze the efficiency of the firms or multinational companies we see that they are eager to produce global goods and sell them.These firms have different markets and advertisement strategies in order to remain their presence in that markets. They try various marketing methods in order to convince the global consumers. These stratigies can be another reason of globalization of the world.
Effects of globalization
The social and economic effects of globalization can be seen clearly in the difference between old Russia and new Russia. Once a closed regime turned a much more opened regime. Whole world see the difference so some nations want to be globalized. I think another perfect example of globalization is McDonald's. McDonald's has become a household name across the world. Today, it has served nearly all over the world and opening new stores in new locations every year. Not only in the U.S, but around the globe. McDonald's has changed eating habits all over the world. Such globalization has had an effect on the restaurant chain as well.Global brands surround the streets and stores.We can see the same advertisements in different countries, place can be different but the content is the same.Globalization has lead to the rise of worldwide markets where countries now have better access to foreign products. Globalization has brought diversity in the products in many countries, and has led to a lot of growth. It is a growing phenomenon where different societies are becoming similar.
There is significant increase in relations between countries in politic,social ,cultural and economic.. Globalisation may have positive or negative impact on nations. Increases in economic trade and politcal relations between countries has led to conflict between countries.'' No one should ever argue that globalization is perfect, because it is not.'' (Taylor 87-91). I think globalization prompts both hopes and fears.'' Some claim that it will divide even further between rich and poor . Others claim that it will assist the spread of economic development ''(Kentor 435-46). I believe that of course globalization has not only positive impacts but also negative impacts on developing countries around the world. I think globalization brings some negative social, political, cultural, economic and environmental effects.Developing nations like China and India where the cost of manufacturing goods and wages are lower,multinational companies have huge investments in these countries.That means less jobs for their people. Globalization occurs when an organization extends its activities to other parts of the world, actively participates in other markets, and competes against organizations located in other countries" (Holton p.36). For instance in Turkey local industries are being taken over by foreign multinational companies. Especially in developing countries where in people are losing their jobs .Thus the rich are getting richer and the poor are becoming poorer. Globalization affects this world and the people in this world in many ways. Globalization affects the economic status of a country. I think Ä±t has indeed weakened the position of poor countries and exposed poor people to harmful competition. On the other hand globalization strategy becomes an economic nightmare for the poor nations. Rich countries influence globalization to their own advantage, harming the economic and cultural issues of the rest of the world. Slowly the world is interacting and integrating with companies, governments and people of different nations creating a globalization effect. As I mentioned , everything has a good side and a bad side. I believe globalization disadvantages differ from nation to nation. If the entire world becomes a global village, any sort of economic crises in one nation will have an impact on various other nations which are closely related to it in terms of trade and commerce. It may cause a domino-effect in the world.
On the power of the firms
Â Most companies move their business operations to foreign countries by going global. They take their business overseas for different reasons. These companies adopt their approach to stay ahead of the competition. A few of them accomplish their purpose. In order to remain competitive, companies move as quickly as possible to secure a strong position in world markets. Most of these world markets are attracting companies.When a foreign company step in to an international market Ä±t brings its values,systems and approach.These companies effect the culture,way of life and minds of people where they operate their business. Multinational American or Europian companies are highly competitive and they can easily effect the culture, society, markets and governments.Different nations have different needs and these companies fill in the blanks successfully in every aspect of life such as food industry,clothing,automative industry and media. Global consumers demand the world standart products.This gives them a clue about the profile of global consumers .This means that more consumers demand more high quality goods and good services. Companies can sell standardized products efficiently and effectively all over the world thus helping to build their own global marketplace.''Globalization is the expansion of international economic activity'' (Hill, 2002, p.8-13). The evidence is on the streets and in stores all around us. I think competition is the key feature for the firms. Globalization also increases the amount of competition faced by firms Developments in information technology, have provided firms opportunities for international markets.They can easily change their systems into new markets in order to lower their costs. Such changes in the business environment enable firms to not only access new markets but also lower their costs . These new market opportunities influence the growing rate of the firms. Globalization increases market potential, trade and investment potential of firms.As a result firm performance is positively influenced by global market opportunities. In addition, globalization also enables consumers to gather information easier and faster, . Thus, they become aware of alternative products.Such an awareness brings the competition betweeen firms in the same market. Firms are now faced with less pricing due to competition. Since a growing number of firms now participate in the global marketplace.There are lots of different firms in the same market.Firms choose to enlargment their presence in other markets by buying the local firms.This situation makes them much more powerful global player in the local markets.In other words firms take undercontrol the markets even governments.
On the responsibility of firms
The world goes through the process of globalization, one that causes increasing economic, financial, social, cultural, political, interdependence among nations.International relations between countries have always existed, but in today's globalised world, these relations have become more integrated. Globalization has several different areas including the globalization of markets. By doing so, companies hope to lower their costs and improve the quality of their product and increasing their distribution. This would allow the companies to compete with other companies on a worldwide basis.
Multinational corporations have provoked a debate about the issues of cultural, economical, political and social values. Firms while competing with eachother in order to take strong position in the global markets they should take their responsibility.As I mentioned globalization includes cultural and social elements. All firms have global strategies.Global firms changes global environment rapidly,to meet competition and to achieve their goals.All nations have different values and culture. The rise of a global culture doesn't mean that all consumers share the same values.People in different nations have different viewpoints. Firms consider these cultural features into consideration.I think the question is'' What kind of adaptations should it take and what products should it introduce in various countries?'' Firms can only answer this question. Their products should fit the conditions of the country where they operate.For instance selling petrol products to Arab countries instead of water isnot a realistic goal.Firms consider the cultural and social differences of nations. Firms should study about the legal, ethical and moral statements of different countries.
With the help of modern technology the world has become a smaller place. People from all over the world can communicate with each other easily and efficiently. Globalization can be of different types social, cultural, economic and technological.. With the growth of modern technology people have come closer and have begun to understand the different cultures of the people living in other countries. Through globalization communication between the people living across the globe has increased . Globalization is not all bad though. It has allowed the sharing of technology, wealth and understanding among nations . It has opened the world to better understanding and communication among people. Teenagers and young adults now communicate with people from all over the world. Movies and TV shows is probably the best example of globalization. Language is one of the most important means of communication. When people speak the same language communication becomes easier and effortless. English is a language spoken by most of the population on the entire globe.Globalization has affected the world in many different ways.People from various countries can share the same global culture.Firms have contributed the nations globalization.People from all over the world can wear the same clothes, they can eat the same foods and also they can listen to same music. With globalization there are chances that the developed countries will take over the developing and underdeveloped countries. The increasing levels of trade and investment have allowed firms to set up factories all over the world. I think firms should thank to globalization. Multinational companies enhance the volume of international trade and investment. Globalization has the potential of making societies richer through trade.The world has been transforming into a big global village.I feel that we are extremely lucky to have the chance to be a part of this.In a very short time borders and walls will fall all around us.
Taylor, Milton C. "Problems of Development in Peru." Journal of Inter-American
Kentor, Jeffrey. "The Long Term Effects of Globalization on Income Inequality
Hill, C.W.L. (2002). International Business Competing in the Global Marketplace, Fourth
Edition. New York: New York
Holton, Robert J. (1998). Globalization and the Nation-state. New York, NY: St. Martin's Press